Foxconn and Fisker to produce 250,000 EVs yearly for major markets

19, May. 2021

An illustration of a Fisker-designed car. Fisker and Foxconn will jointly develop a breakthrough electric vehicle and start production from the fourth quarter of 2023 in America. (Photo courtesy of Fisker)
An illustration of a Fisker-designed car. Fisker and Foxconn will jointly develop a breakthrough electric vehicle and start production from the fourth quarter of 2023 in America. (Photo courtesy of Fisker)

By Gloria Cho

TAIPEI, NNA - World’s largest electronics contractor Hon Hai Precision Industry Co. plans to roll out 250,000 electric vehicles yearly in its ambition to grab a share of the booming EV market in the coming years.

Hong Hai, which is better known as Foxconn Technology, and Californian electric car maker Fisker Inc, will start manufacturing a breakthrough Fisker model at a plant in America in the fourth quarter of 2023. They will then expand production to other global sites to achieve the annual target set in their latest agreements.

Priced under $30,000, the vehicle will be sold in North America, Europe, China and India, according to their joint statement.

Fisker and Foxconn will jointly invest in Project PEAR (Personal Electric Automotive Revolution) to develop the vehicle on their lightweight platform which will also support potential future vehicles. Terms of their agreements were not disclosed.

The location of the US plant is still being identified. Its annual capacity will start with at least 150,000 vehicles.

Fisker chairman and CEO Henrik Fisker said, "In order to deliver on our promise of product breakthroughs from Project PEAR, we needed to rethink every aspect of product development, sourcing, and manufacturing. Our partnership with Foxconn enables us to deliver those industry firsts at a price point that truly opens up electric mobility to the mass market.”

Foxconn group chairman Young-way Liu said Foxconn will work with its suppliers from across the world for Project PEAR.

"We have world-class supply chains in place to support Project PEAR – in particular, securing the reliable delivery of chipsets and semiconductors," he said.

Fisker plans to start producing its first vehicle, the Ocean electric SUV, in Europe in the fourth quarter of 2022 and unveil its prototype at the Los Angeles Auto Show later this year.

Project PEAR will be the company’s second production model.

“At under $30,000 with stunning design and innovation, we are rethinking the car, both in terms of proportions, design, interior functionality and connected user experience," said Fisker.

“We see the tipping point for electric vehicles fast approaching and we are utterly focused on being ready to meet that demand. The Fisker brand will go beyond electrification, by taking the lead in design innovation and sustainability,” he added.

Liu told an earnings conference on May 14 that extending the production of its first EV model to bases in China, India or Europe is a possibility if the supply chain and support from their authorities are favorable. China is a strong possibility as most of its production base is located there.

The Taiwanese company expects to release its new EV kit in October and a prototype electric bus in 2022.

Known for making iPhones in China for Apple Inc. for years, Foxconn decided to enter the EV fray not long ago with moves such as a joint venture for contract manufacturing with Chinese automaker Zhejiang Geely Holding Group.

On the current global chip shortage which hits cars and electronics, Liu believes the crisis will continue into the second quarter of 2022.

Bouncing back from pandemic disruption, Foxconn reported strong first-quarter net earnings of NT$28.2 billion ($1 billion), up significantly from NT$2.1 billion last year due to strong demand across all segments of consumer electronics, cloud computing, computer end products and components.